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20 Cards in this Set
- Front
- Back
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What is Part 4A permission? |
Permission under part 4a of the financial services and markets at 2000 to carry out specified regulated activities |
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Direct investment in shares is considered higher. Risk is because it is not classified as a regulated investment. True Or false? |
False. Investment in shares is a regulated investment. |
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When assessment where the person is fit and proper to perform a senior management function, the FCA requires that particular attention be given to certain factors. Which are the following factors? Does the FCA require NOT to be considered? |
There is no need to pay attention to how long someone has worked in the industry as they may have a pool of track record compared to someone that is new and has good credentials. |
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What was the main reason behind the introduction of the senior managers and certification regime in 2016? |
The regime was introduced in order to clarify responsibility within the firm, thus making it easier to hold individuals accountable for a particular failing. Prior to it introduction the FCA and PRA had found it difficult to determine individual responsibility when seeking to take action against firms in the financial services industry. |
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An employee is being reviewed to ensure they are maintaining their competence, as required by the TC source book. What three areas will the review focus on? |
-Technical knowledge and application. - skills and expertise. -Understanding of changes in the market and to products, legislation and regulation. |
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What is a 'fixed portfolio' firm? |
A fixed portfolio firm is one that has a large number of customers and the potential having made impact in the market, it receives the highest level supervision, involving continuous assessment and a designated individual supervisor. |
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If the FCA discovers a contravention of one of its rules, one of the steps it may take is the very firm's permissions. This means that: |
The firm may no longer be able to carry out one or more of its regulated activities. |
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In relation to the FCA enforcement powers, what is the difference between 'restitution' and 'redress'? |
Restitution refers to the FCAs power, with a court order, to require a person firm to forfeit any profit made as a result of contravening and FCA rule. Redress a place to situation in which an identifiable customer has made a loss as a result of a contravention of an FCA rule. The FCA, will they call Jordan, can require that a loss be made good |
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Whose rights are protected by the public interest disclosure after 1998? |
Employees who raise concerns about breaches of regulation or other misconduct. |
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A firm has taken disciplinary action against the senior manager for a breach of FCA conduct rules. Within what. Must the firm report the breach to the FCA? |
7 days |
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FCA rules required a firm to seek references from previous employers before an individual can be appointed to a senior manager or certification function. The reference must cover what period? |
The last 6 years. |
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Compliant finance is a small firm of advisors that have been categorised as a flexible portfolio firm for supervision purposes. This means that the firm: |
Is supervised through the FCA customer contact centre. |
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Jeff is a financial advisor, specialises in non MIFID investments. For how long must Jeff's firm keep records of his training and competence after he leaves the firm? |
At least 3 years. |
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How long does a person have to pass an appropriate qualification as a investment advisor? |
48 month deadline. |
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Examples of regulated activities? |
-accepting deposits. -debt collecting. -dealing and arranging investments. -managing investments. -Establishing stakeholder pension schemes. ETC |
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Examples of regulated investments |
-Deposits. -Electronic money. -insurance contracts. -Gilt-edge stocks. -Units in collective investments. -Mortgage contracts. |
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What is an appointed representative (ARS) |
An appointed representative is a firm or person who runs regulated activities and acts as an agent for a firm, which is known as AR's principle |
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What is the maximum sentence for a senior manager found guilty of 'Reckless misconduct'? |
The maximum punishment is a prison sentence of up to 7 years and/or an unlimited fine |
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Record keeping requirements related to training & competence? |
-3 years for individuals carrying out non-MIFID business. -At least 5 years for individuals carrying out MIFID. -Indefinetly for individuals carrying out pensions transfer business. |
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What are the FCA enforcement powers: |
-Variation of a firm's permissions. -withdrawal of approval. -injunction. -restitution. -Redress. -Disciplinary action. -Disclosure. -Enhanced supervision. |
